Whilst it may not be a huge deal, we thought it was good to see that the Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR) Chairman, Thomas Dietz, recently bought US$56k worth of stock, for US$13.94 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 20%.
Eiger BioPharmaceuticals Insider Transactions Over The Last Year
Notably, that recent purchase by Thomas Dietz is the biggest insider purchase of Eiger BioPharmaceuticals shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$14.60. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Eiger BioPharmaceuticals insiders were buying shares, but not selling. Their average price was about US$11.80. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Eiger BioPharmaceuticals
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Eiger BioPharmaceuticals insiders own about US$5.0m worth of shares (which is 1.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Eiger BioPharmaceuticals Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Eiger BioPharmaceuticals insiders are reasonably well aligned, and optimistic for the future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Eiger BioPharmaceuticals.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.